Bitcoin climbed above $61,000 Thursday, marking its strongest performance in over a week, after Federal Reserve Chair Kevin Warsh signalled that inflation risks had softened. The move came as a notable divergence from broader market turmoil, with Asian tech stocks facing severe pressure on renewed worries about artificial intelligence chip demand.
According to reporting by CoinDesk, the cryptocurrency gained 4.1% over 24 hours, recovering from an earlier dip to $58,200. The catalyst was Warsh’s remarks at the European Central Bank’s forum in Sintra, Portugal, where he struck a notably softer tone on price pressures—his first dovish signal since the Fed’s hawkish June rate guidance had triggered sustained outflows from U.S. bitcoin spot ETFs throughout the second quarter.
The divergence between bitcoin’s strength and equity weakness underscores shifting risk sentiment. South Korea’s Kospi index plunged 7.9% as Samsung Electronics and SK Hynix shed a combined $290 billion in market capitalisation, marking the second major sell-off this month tied to AI infrastructure concerns. Meta’s announcement that it would monetize spare computing capacity to external customers only deepened anxiety about whether the AI buildout has outpaced actual demand.
Bitcoin Holds Ground While Tech Stumbles
What stands out is bitcoin’s resilience during the selloff. For most of the second quarter, capital had rotated decisively from crypto into the AI trade, weighing on the asset. Thursday’s relative strength, then, offered a rare bright spot for bulls who have watched steady outflows erode gains since spring.
“This is a rather dangerous consolidation,” FxPro chief market analyst Alex Kuptsikevich said earlier in the week, when bitcoin traded below $60,000. He flagged $40,000 as the next meaningful support if weakness accelerated. Thursday’s recovery above $61,000 provides some breathing room, though one solid session does not reverse a disappointing first half of the year.
Jobs Report Sets Stage for July Direction
The near-term trajectory will hinge on Friday’s U.S. payrolls data. A strong print gives the Fed political cover to maintain a restrictive policy stance, potentially capping near-term upside for risk assets including bitcoin. A soft result revives market bets on interest-rate cuts, typically a tailwind for speculative assets.
Warsh’s comments, while dovish relative to June rhetoric, did not signal an imminent pivot. Market participants will scrutinise the employment figures closely to gauge whether the Fed has genuine room to ease—and what that might mean for bitcoin and equities heading into the second half of 2026.